Amendment - CR&R - 2023-01-27FIRST AMENDMENT TO AGREEMENT
BETWEEN COSTA MESA SANITARY DISTRICT AND CR&R
INCORPORATED
This First Amendment to the Agreement between Costa Mesa Sanitary District and CR&R
Incorporated (the "Amendment") is entered into this day of A, 2023, by and
between Costa Mesa Sanitary District (the "District") and CR&R Incorpo ed, a California
corporation ("Hauler").
RECITALS
WHEREAS, the District and Hauler previously entered into that Agreement dated July 1,
2018 to provide residential solid waste collection services within the District limits (the
"Agreement"); and,
WHEREAS, the State of California has found and declared that the amount of Solid Waste
generated in California, coupled with diminishing Disposal capacity and interest in minimizing
potential environmental impacts from landfilling and the need to conserve natural resources, have
created an urgent need for State and local agencies to enact and implement an aggressive integrated
waste management program. The State has, through enactment of the California Integrated Waste
Management Act of 1989 (AB 939) (California Public Resources Code Section 40000, et seq.) and
subsequent related legislation including, but not limited to: the Jobs and Recycling Act of 2011
(AB 341), the Event and Venue Recycling Act of 2004 (AB 2176), SB 1016 (Chapter 343, Statutes
of 2008), the Mandatory Commercial Organics Recycling Act of 2014 (AB 1826), Green Material
Used as Alternative Daily Cover of 2014 (AB 1594), and the Short -Lived Climate Pollutants Bill
of 2016 (SB 1383), directed the responsible State agency, and all local agencies, to promote a
reduction in Landfill Disposal and to maximize the use of feasible waste reduction, Reuse,
Recycling, and composting options in order to reduce the amount of material that must be
Disposed; and,
WHEREAS, SB 1383 establishes regulatory requirements for jurisdictions, Customers,
haulers, Solid Waste facilities, and other entities to support achievement of State-wide Organic
Waste Disposal reduction targets; and
WHEREAS, SB 1383 Regulations require the District to implement Collection programs,
meet Processing facility requirements, conduct contamination monitoring, provide education,
maintain records, submit reports, monitor compliance, conduct enforcement, and fulfill other
requirements; and, the District has chosen to delegate some of its responsibilities to the Hauler,
acting as the District's designee, and Hauler desires to take on these responsibilities; and
WHEREAS, the District and Hauler desire to amend the Agreement as set forth herein.
NOW, THEREFORE, in consideration of the promises stated above and the terms,
conditions, covenants, and agreements contained herein, the Parties do hereby agree as follows:
1. AMENDMENT TO ARTICLE 1.
The definitions contained in Article 1 of the Agreement, are hereby supplemented,
amended and/or superseded as set forth herein. Definitions otherwise contained in the Agreement
and/or any previous amendment(s), but which are not addressed below, shall remain the same.
"Blue Container" has the same meaning as in 14 CCR Section 18982(a)(5) and shall be used for
the purpose of storage and Collection of Source Separated Recyclable Materials (SSBCOW).
"California Code of Regulations" or "CCR" means the State of California Code of Regulations.
CCR references in this Agreement are preceded with a number that refers to the relevant Title of
the CCR (e.g., "14 CCR, Division 7, Chapter 12" refers to Title 14, Division 7, Chapter 12 of the
California Code of Regulations).
"CalRecycle" means California's Department of Resources Recycling and Recovery, which is the
Department designated with responsibility for developing, implementing, and enforcing SB 1383
Regulations on jurisdictions and other regulated entities.
"Collect"" means the act of taking physical possession of Solid Waste within the District for
Recycling, Processing or Disposal.
"Compostable Plastics" or "Compostable Plastic" means plastic materials that meet the ASTM
D6400 standard for compostability, or as otherwise described in 14 CCR Section 18984. 1 (a)(1)(A)
or 18984.2(a)(1)(C).
"Compost" has the same meaning as in 14 CCR Section 17896.2(a)(4), as may be amended from
time to time.
"Customer" means the person who receives the Hauler's Collection services and to whom the
Hauler submits its billing invoice to and collects payment from District for Collection services
provided to a residence.
"Disposal" or "Dispose" means the final disposition of any Solid Waste Collected by the Hauler
at a Facility as provided herein.
"Diversion (or any variation thereof including "Divert")" means activities which reduce or
eliminate Discarded Materials from Disposal, including, but not limited to, source reduction,
Reuse, salvage, Recycling, and composting.
"Edible Food" means food intended for human consumption. For the purposes of this Agreement,
Edible Food is not Solid Waste if it is recovered and not discarded. Nothing in this Agreement
requires or authorizes the recovery of Edible Food that does not meet the food safety requirements
of the California Retail Food Code. If the definition in 14 CCR Section 18982(a)(18) for Edible
Food differs from this definition, the definition in 14 CCR Section 18982(a)(18) shall apply to this
Agreement.
"Excluded Waste" means Hazardous Substance, Hazardous Waste, Infectious Waste, Designated
Waste, volatile, corrosive, Medical Waste, infectious, regulated radioactive waste, and toxic
substances or material that Facility operator(s) reasonably believe(s) would, as a result of or upon
acceptance, Transfer, Processing, or Disposal, be a violation of local, State, or Federal law,
regulation, or ordinance, including: land use restrictions or conditions, waste that cannot be
Disposed of in Class III Landfills or accepted at the Facility by permit conditions, waste that in
Hauler's reasonable opinion would present a significant risk to human health or the environment,
cause a nuisance or otherwise create or expose Hauler or District to potential liability; but not
including de minimis volumes or concentrations of waste of a type and amount normally found in
Single -Family or Multi -Family Solid Waste after implementation of programs for the safe
Collection, Processing, Recycling, treatment, and Disposal of batteries and paint in compliance
with Sections 41500 and 41802 of the California Public Resources Code.
"Facility" means any plant, site, or operation used for the purpose of handling Solid Waste,
including, but not limited to, Disposal, Recycling, and Processing facilities or operations.
"Food Recovery" means actions to collect and distribute food for human consumption which
otherwise would be disposed, or as otherwise defined in 14 CCR Section 18982(a)(24).
"Food Scraps" means all food such as, but not limited to, fruits, vegetables, meat, poultry,
seafood, shellfish, rice, beans, pasta, bread, cheese, eggshells and fats, oil, and grease (FOG).
"Food -Soiled Paper" means compostable paper material that has come in contact with food or
liquid, such as, but not limited to, compostable paper plates, paper coffee cups, napkins, pizza
boxes, and milk containers that are not coated with wax or plastic.
"Food Waste" means Source Separated Food Scraps, Food -Soiled Paper, and Compostable
Plastics. Food Waste is a subset of SSGCOW. Edible Food separated for Food Recovery shall not
be considered Food Waste.
"Gray Container" has the same meaning as in 14 CCR Section 18982(a)(28) and shall be used
for the purpose of storage and Collection of Gray Container Waste.
"Gray Container Waste" means Solid Waste that is collected in a Gray Container as specified in
14 CCR Sections 18984.1(a) and (b), or as otherwise defined in 14 CCR Section 17402(a)(6.5).
"Green Container" has the same meaning as in 14 CCR Section 18982(a)(29) and shall be used
for the purpose of storage and collection of Source Separated Green Container Organic Waste
(SSGCOW).
"Hauler Route(s)" means the designated itinerary or sequence of stops for each segment of the
District's collection service area, or as otherwise defined in 14 CCR Section 18982(a)(31.5).
"Non-Compostable Paper" includes, but is not limited to, paper that is coated in a plastic material
that will not breakdown in the composting process, or as otherwise defined in 14 CCR Section
18982(a)(41).
"Non -Organic Recyclables" means non-putrescible and non -hazardous recyclable wastes
including, but not limited to, bottles, cans, metals, plastics, and glass, or as otherwise defined in
14 CCR Section 18982(a)(43). Non -Organic Recyclables are a subset of Source Separated
Recyclable Materials.
"Organic Waste" means Solid Waste containing material originated from living organisms and
their metabolic waste products including, but not limited to, food, Yard Trimmings, organic
textiles and carpets, lumber, wood, Paper Products, Printing and Writing Paper, manure, biosolids,
digestate, and sludges, or as otherwise defined in 14 CCR Section 18982(a)(46). Biosolids and
digestate are as defined in 14 CCR Section 18982(a)(4) and 14 CCR Section 18982(a)(16.5),
respectively.
"Paper Products" include, but are not limited to, paper janitorial supplies, containers, wrapping,
packaging, file folders, hanging files, corrugated boxes, tissue, and toweling; or as otherwise
defined in 14 CCR Section 18982(a)(51).
"Performance -based Compliance Approach" means the method of complying with the SB 1383
Regulations through implementation of a collection system, programs, and policies in accordance
with 14 CCR, Division 7, Chapter 12, Article 17, or as otherwise defined by 18982(a)(52.5), and
all associated requirements.
"Printing and Writing Papers" include, but are not limited to, copy, xerographic, watermark,
cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes,
book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters, index
cards, calendars, brochures, reports, magazines, and publications; or as otherwise defined in 14
CCR Section 18982(a)(54).
"Processing" means the controlled separation, recovery, volume reduction, conversion, or
Recycling of Solid Waste including, but not limited to, organized, manual, automated, or
mechanical sorting, the use of vehicles for spreading of waste for the purpose of recovery, and/or
includes the use of conveyor belts, sorting lines, or volume reduction equipment, or as otherwise
defined in 14 CCR Section 17402(a)(20).
"Prohibited Container Contaminants" means the following: (i) Discarded Materials placed in
the Blue Container that are not identified as acceptable Source Separated Recyclable Materials for
the District's Blue Container; (ii) Discarded Materials placed in the Green Container that are not
identified as acceptable SSGCOW for the District's Green Container; (iii) Discarded Materials
placed in the Gray Container that are acceptable Source Separated Recyclable Materials and/or
SSGCOW to be placed in District's Green Container and/or Blue Container; and (iv) Excluded
Waste placed in any Container.
"Recycle" or "Recycling" means the process of Collecting, sorting, cleansing, treating, and
reconfiguring materials for the purpose of returning them to the economic mainstream in the form
of raw material for new, Reused, or reconstituted products that meet the quality standards
necessary to be used in the marketplace. Recycling includes processes deemed to constitute a
reduction of Landfill Disposal pursuant to 14 CCR, Division 7, Chapter 12, Article 2. Recycling
does not include gasification or transformation as defined in Public Resources Code Section
40201.
"Reuse" or any variation thereof, means the use, in the same, or similar, form as it was produced,
of a material which might otherwise be discarded, or as otherwise defined in 14 CCR Section
17402.5(b)(2).
"SB 1383" means Senate Bill 1383 of 2016 approved by the Governor on September 19, 2016,
which added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and
added Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public
Resources Code, establishing methane emissions reduction targets in a statewide effort to reduce
emissions of short-lived climate pollutants as amended, supplemented, superseded, and replaced
from time to time.
"SB 1383 Regulations" or "SB 1383 Regulatory" refers to the Short -Lived Climate Pollutants
(SLOP): Organic Waste Reductions regulations developed by CalRecycle and adopted in 2020 that
created Chapter 12 of 14 CCR, Division 7 and amended portions of regulations of 14 CCR and 27
CCR.
"Service Level" refers to the number and size of a Customer's Container(s) and the frequency of
Collection service, as well as ancillary services such as lock/unlock service, Container push/pull
service, etc.
"Source Separated" means materials, including commingled Recyclable materials, that have
been separated or kept separate from the Solid Waste stream, at the point of generation, for the
purpose of additional sorting or Processing those materials for Recycling or Reuse in order to
return them to the economic mainstream in the form of raw material for new, reused, or
reconstituted products which meet the quality standards necessary to be used in the marketplace,
or as otherwise defined in 14 CCR Section 17402.5(b)(4). For the purposes of the Agreement,
Source Separated shall include separation of materials by the Customer into different Containers
for the purpose of Collection such that Source Separated materials are separated from Gray
Container Waste and other Solid Waste for the purposes of Collection and Processing.
"Source Separated Blue Container Organic Waste" or "SSBCOW" means Source Separated
Organic Wastes that can be placed in a Blue Container that is limited to the collection of those
Organic Wastes and Non -Organic Recyclables as defined in Section 18982(a)(43), or as otherwise
defined by Section 17402(a)(18.5).
"Source Separated Green Container Organic Waste" or "SSGCOW" means Source Separated
Organic Waste that can be placed in a Green Container that is specifically intended for the separate
collection of Organic Waste by the Customer, excluding Source Separated Blue Container Organic
Waste, carpets, Non-Compostable Paper, and textiles.
"Source Separated Recyclable Materials" means Source Separated Non -Organic Recyclables
and SSBCOW.
"Standard Compliance Approach" means the method for complying with the SB 1383
Regulations through implementation of a collection system pursuant to 14 CCR, Division 7,
Chapter 12, Article 3, and all associated program and policy requirements.
"Yard Trimmings" means types of SSGCOW resulting from normal yard and landscaping
installation, maintenance, or removal that the Customers Source Separate and set out in Green
Containers for Collection for the purpose of Processing by the Hauler.
2. AMENDMENTS TO ARTICLE 2.
Section 2.2.2 of the Agreement is amended to read as follows:
"The term of this Agreement during which Hauler will provide collection services shall be
ten (10) years (the "Initial Term") through June 30, 2028, subject to extension as provided
in Section 2.2.3. Notwithstanding the foregoing, the unexcused failure or refusal of Hauler
to perform any material term, covenant, obligation, or condition contained in this
Agreement shall give rise to the right, in favor of District, for earlier termination of this
Agreement for cause in accordance with the procedures contained herein.
Section 2.2.3 of the Agreement is amended to read as follows:
"The term of this Agreement may be extended for an additional two (2) five-year options
upon mutual agreement of the parties."
3. AMENDMENTS TO ARTICLE 3.
Section 3.1.2.1
D. The parties agree that the Hauler shall complete a cart inventory/occupancy count by January
2028. Conducting an inventory every five (5) years for the life of the agreement will ensure that
everyone's records are accurate and new accounts are identified.
Section 3.4 Consumer Price Index Adjustments is amended to read:
Hauler may propose an adjustment to the maximum rates as set forth in Exhibit B by multiplying
each rate by the percentage change in the CPI for All Urban Consumers in the Los Angeles Area,
not seasonally adjusted (CPI-U) — Los Angeles -Long Beach- Anaheim for the twelve (12) month
period ending in February. For the term of the agreement, the CPI request is capped at five percent
(5%) per year. The tonnage rates in Exhibit B will need to be adjusted before a three Container
Collection program is implemented on or before December 31, 2024. The request must be received
by the District no later than April 1 of each year. Hauler shall submit to the District's Finance
Department all necessary information to justify the requested CPI adjustment. Hauler agrees and
acknowledges that District is entitled to conduct an independent review of all information
submitted by Hauler to justify Hauler's requested rate increase. To justify an increase Hauler shall
show how it has been affected by the CPI increase.
The District shall have discretion to deny the request for increase based on its reasonable judgment
based on substantial evidence, including but not limited to, District revenues being down, the CPI
increase being negative or not significant, or other action by federal, state or local agencies. The
denial of the increase shall not be based on poor performance, as it is intended by the parties that
the liquidated damages provisions are adequate to address performance. Material poor
performance may be grounds for termination of the Agreement, as provided elsewhere in the
Agreement."
Section 3.4.1 is amended to read as follows:
HAULER shall make available to DISTRICT documentation stating HAULER's profit margin
with respect to the services provided in this Agreement for the year ended in February that
coincides with the period for which HAULER is requesting a rate increase. HAULER agrees that
DISTRICT shall have access to underlying system -generated data to support HAULER's
calculation of profit margin. This underlying data includes detailed support for revenue, expenses,
and methodology for any allocation of corporate and regional indirect costs, as well as any other
overhead or indirect costs allocated to DISTRICT. DISTRICT shall have the right to access any
support for documentation at the transaction level as it deems necessary. The result of the
DISTRICT's review shall not become a public record by such disclosure. The parties agree that
DISTRICT and its officers, agents, or employees shall have access to the HAULER's financial
information at HAULER's facility in a reasonable comfortable area with table and work area.
4. AMENDMENT TO SECTION 4.2.
Section 4.2 of the Agreement is amended to read as follows:
"Hauler shall provide sufficient programs and services to ensure the District will meet or exceed
the diversion goals (including, without limitation, amounts of Solid Waste to be diverted, time
frames for diversion, and any other requirements) set forth in AB 939, AB 341, AB 1594, AB
1826, and SB 1383.
5. AMENDMENT TO ARTICLE 5.
The provisions of Article 5 of the Agreement are hereby supplemented, amended and/or
superseded as set forth herein, as applicable. Provisions otherwise contained in the Agreement, but
which are not addressed below, shall remain the same:
General. No later than [December 31, 2024], Hauler shall provide a three -Container
Collection program for the separate Collection of Source Separated Recyclable Materials,
SSGCOW, and Gray Container Waste as specified in this Agreement, using Containers that
comply with the requirements of this Agreement and SB 1383 Regulations. Hauler shall not
knowingly Collect Blue, Green, or Gray Containers that include Prohibited Container
Contaminants. The three containers shall consist of (i) one 65-gallon existing mixed waste
container (black lids) re -labeled as a Gray Container (with the current second mixed waste
container to be removed), (ii) one new 90-gallon Blue Container with RFID code, and (iii) one 65-
gallon Green Container. Customers may request a second Green Container at no additional cost.
Customers will be charged a fee for a second trash and/or recycling cart and for a third and more
Green Containers. Upon request by District and/or by customer, hauler will replace Gray Container
and/or Green Container with a 35, 65, or 90-gallon container.
Cart Labels. All carts issued to CMSD customers will have interchangeable labels, not be
embossed on the cart lids. The labels will be designed and printed by Hauler and be approved by
the District.
Source Separated Recyclable Materials Collection (Blue Container). Hauler shall
provide Blue Containers to Customers for Collection of Source Separated Recyclable Materials
and shall provide Source Separated Recyclable Materials Collection service. All single and multi-
family dwellings serviced by the District will be provided a Blue Container. Hauler shall Collect
Source Separated Recyclable Materials on a separate route and transport them to the CR&R
Transfer and Material Recovery Facility in Stanton, California for Processing in accordance with
SB 1383 Regulations.
[Source Separated Recyclable Materials that are to be accepted for Collection in the Source
Separated Recyclable Materials Collection program include the following: (i) Non -Organic
Recyclables such as: aluminum, glass bottles and jars, rigid plastics (marked # 1 through # 7), and
tin and bi-metal cans; and (ii) SSBCOW such as: Paper Products, Printing and Writing Papers,
wood and dry lumber.]
SSGCOW Collection (Green Container). Hauler shall provide Green Containers to
Customers for Collection of SSGCOW and shall provide SSGCOW Collection service. Hauler
shall Transport the SSGCOW to the CR&R Anaerobic Digestion Facility in Perris, California for
Diversion.
[SSGCOW that are to be accepted for Collection in the SSGCOW Collection program
include the following: Food Scraps; Food -Soiled Paper; Yard Trimmings, which are defined
below; and Compostable Plastics. Carpets, non-Compostable Paper, textiles, and Prohibited
Container Contaminants shall not knowingly be Collected in the Green Containers. Yard
Trimmings that are to be accepted for Collection in the SSGCOW Collection program include the
following: green trimmings, grass, weeds, flowers, leaves, prunings, branches, dead plants, brush,
tree trimmings, dead trees weighing no more than 50lbs, and other types of SSGCOW resulting
from normal yard and landscaping installation, maintenance, or removal, provided all SSGCOW
fits inside the Green Container with the lid closed and does not exceed 150 pounds.]
[Hauler may Collect compliant Compostable Plastics, as defined, in the Green Containers
for Processing. At least three (3) months prior to the commencement of the Collection of
Compostable Plastics in the SSGCOW program, Hauler shall provide written notification to the
District whether the Facility can or cannot Process and recover these Compostable Plastics in
accordance with SB 1383 Regulations. If the Facility can process and recover Compostable
Plastics, and Hauler elects to Collect Compostable Plastics in the Green Container, then Hauler
shall provide annual written notification to the District that the Facility has and will continue to
have the capabilities to Process and recover the Compostable Plastics. If the Facility cannot process
and recover Compostable Plastics, then Hauler will not Collect Compostable Plastics in the Green
Container. Hauler and District agree to provide customers with advance notice and education to
allow this to occur successfully.
Gray Container Waste Collection. Hauler shall provide Gray Containers to Customers
for Collection of Gray Container Waste, and shall provide Gray Container Waste Collection
service. Hauler shall Transport the Gray Container Waste to an Orange County landfill Facility in
accordance with the SB 1383 Regulations and as provided herein. Prohibited Container
Contaminants shall not knowingly be Collected in the Gray Containers.
The following provision is added to Section 5.3 of the Agreement:
"The average age of vehicle fleet shall not exceed seven (7) years at any time during the
term of this agreement and any extension to this term agreed to by both parties. All vehicles shall
be equipped with a collision avoidance System and technology to capture driver, route and service
confirmation in real time to be accessed by customer service and the District." Hauler will not
deviate from their service hours for collecting a Blue Container because additional vehicles are
required to provide the service.
Hauler has agreed to provide the Sustainability Coordinator assigned to the District and Hauler
vehicle to conduct outreach. List of vehicles to be provided by the Hauler are listed in Exhibit D
and E.
Section 5.9 of the Agreement is amended as follows:
5.9 Office Hours
Office hours shall be at least 8:00 a,m. to 5:00 p.m., Monday - Friday. excluding holidays. A
responsible and qualified person shall be available by phone. A local phone number (949)
646-4617 will be available to Costa Mesa residents during all regular hours. Services shall be
adequate to handle all calls on the busiest days. A recorder with voice mail message with next
business day follow up shall be available for afterhours calls, with the ability for DISTRICT
personnel to contact HAULER's Operations Manager after hours by cell phone or other device
that will achieve contact after hours.
Section 5.14 of the Agreement is amended as follows:
District and Hauler shall designate an individual to act as liaison between the District and Hauler
as the respective agents of each which are named as follows:
District
Scott Carroll, General Manager
290 Paularino Ave
Costa Mesa, CA 92626
Hauler
Julie Barreda, Regional Vice President
11292 Western Ave
Stanton, CA 90680
949-645-8400 714-248-9335
Hauler shall provide District with a cell phone number that is provided to its liaison, that is the cell
phone number that is carried off -duty as well as on -duty. District shall not share that cell phone
number as a general number for the public, but said number will only be kept by District's liaison
person.
6. CONTAMINATION MONITORING.
This amendment is not replacing existing sections of the 2018 Agreement. Indemnification and
CERCLA obligations remain, and Contamination Monitoring is an additional subject that has also
utilized Section 6. This Agreement contemplates a new integrated agreement that harmonizes these
inconsistencies.
A. Actions upon Identification of Prohibited Container Contaminants.
Upon finding Prohibited Container Contaminants in a Container, Hauler shall follow the
protocols set forth in this Section.
1. Record Keeping. The driver or other Hauler representative shall record
each event of identification of Prohibited Container Contaminants in a written log or in the
on -board computer system including date, time, Customer's address, type of Container
(Blue, Green, or Gray Container). The records shall be easily understandable to District
staff. Hauler will also keep the following records:
a. Organic waste collection amounts and contamination levels
b. Education and outreach provided to customers
C. Contamination enforcement activities
d. Complaints and investigations, and their resolutions
e. Program(s) provided and any alterations thereto (must have written
approval from the District and any alteration).
2. Courtesy Pick -Up Notices. Upon identification of Prohibited Container
Contaminants in a Customer's Container, Hauler shall provide the Customer a courtesy
pick-up notice. The courtesy pick-up notification shall: (i) inform the Customer of the
observed presence of Prohibited Container Contaminants; (ii) include the date and time the
Prohibited Container Contaminants were observed; (iii) include information on the
Customer's requirement to properly separate materials into the appropriate Containers, and
the accepted and prohibited materials for Collection in the Blue Container, Green
Container, and/or Gray Container; (iv) inform the Customer of the courtesy pick-up of the
contaminated materials on this occasion with information that following three consecutive
instances of Prohibited Container Contaminants within a twelve-month time period,
Hauler may assess contamination Processing fees; and, (v) may include photographic
evidence.
The first courtesy pickup notice in any twelve-month period shall be given by way
of a yellow -colored tag attached to or adhered to the Customer's contaminated Containers
placed on the container. The second courtesy pickup notice in any twelve-month period
shall be given by way of a red -colored tag attached to or adhered to the Customer's
contaminated Containers placed on the container. The third courtesy pickup notice in any
twelve-month period shall be given by way of a letter sent to the Customer service address.
3. Notice of Assessment of Contamination Processing Fees. If the Hauler
observes Prohibited Container Contaminants in a Customer's Container on more than three
occasions within a twelve-month time period and issued courtesy pick-up notices on each
of those occasions, the Hauler may impose a contamination Processing fee as stated in
Exhibit C. Hauler shall notify the District in its monthly report of Customers for which
contamination Processing fees were assessed. Hauler shall leave a contamination
Processing fee notice attached to or adhered to the Customers' contaminated Containers;
at the Premises' door or gate; or, subject to District's approval, may deliver the notice by
mail, e-mail, text message, or other electronic message. Hauler shall allow an opportunity
for the recipient to contest the fee. The contamination Processing fee notice shall describe
the specific material(s) of issue, explain how to correct future set outs, and indicate that the
Customer will be charged a contamination Processing fee. The Hauler will generate an
invoice for the contamination Processing fee and mail it to the property owner of record.
Revenues from the contamination processing fee shall be shared in the same proportion
and manner as additional container charges pursuant to Section 5.2.2 (20% by the Hauler
and 80% by the District). At any time, District may determine to issue an Administrative
Civil Fine for contamination offenses in accordance with the procedures set forth in
Government Code Section 53069.4.
B. Disposal of Contaminated Materials. If the Hauler observes Prohibited Container
Contaminants in a Customer's Container(s), Hauler may Dispose of the Container's contents,
provided Hauler complies with the noticing requirements in subsection A above.
7. ROUTE REVIEWS AND WASTE EVALUATIONS.
Hauler shall meet its SB 1383 Regulations contamination monitoring requirements
commencing January 1, 2023, by using Route Reviews ; provided however, that if Hauler complies
with SB 1383 Regulations using a Performance -based Compliance Approach, it shall monitor
containers using waste evaluations, as outlined herein:
A. Route Reviews
1. Hauler shall, at its sole expense, conduct Hauler Route reviews for
Prohibited Container Contaminants in Collection Containers in a manner that is deemed
safe by the Hauler; is approved by the District; is conducted in a manner that results in all
Hauler Routes being reviewed annually, and is consistent and in accordance with SB 1383
Regulations. Containers may be randomly selected along the Hauler Route. This Section
should not be construed to require that every container on a Hauler Route must be sampled
annually.
2. Upon finding Prohibited Container Contaminants in the Container, Hauler
shall follow the contamination monitoring noticing procedures in Section 6 of this
Amendment.
C. Recordkeeping Requirements. Hauler shall maintain all applicable records
required under SB 1383 Regulations, and report to the District on a monthly basis on contamination
monitoring activities, route reviews and/or waste evaluations, and actions taken. Hauler agrees to
provide data from their smartphone app (Audit Buddy) as required by the District.
D. Alternative Compliance. Nothing in this section shall prohibit Hauler from
meeting its compliance requirements by any alternative methods or procedures, provided it
complies with SB 1383, the SB 1383 Regulations, and/or any other applicable law, as may be
amended from time to time, and provided that District is notified and does not reasonably object.
8. AMENDMENT TO ARTICLE 7.
The following Section 7.3 is added to the Agreement:
7.3 Liquidated Damages
If Hauler fails to achieve certain collection reliability standards, the District and its residents will
suffer damages and that it is and will be impractical and extremely difficult to ascertain and
determine the exact amount of damages which the District will suffer. Therefore, the parties agree
that the liquidated damage amounts described in Exhibit "A" attached hereto, represent a
reasonable estimate of the amount of such damages for such specific breaches, considering all of
the circumstances, including the relationship of the sums to the range of harm to the District that
reasonably could be anticipated and the anticipation that proof of actual damages would be costly
or impractical. These liquidated damages are agreed to pursuant to the alternate authority of a
public project for inconvenience to the public (Government code section 53069.85) and as
alternatively provided in Civil Code Section 1671. By initialing hereafter Hauler acknowledges
the difficulty in calculating actual damages and agrees to those set forth in Exhibit "A."
Liquidated damages are subject to be increased or decreased yearly on July 1 according to the
percentage change in the CPI for All Urban Consumers in the Los Angeles Area, not seasonally
adjusted (CPI-U) — Los Angeles — Long Beach — Anaheim for the twelve-month period ending the
February immediately prior to the applicable adjustment date.
9. AMENDMENT TO SECTION 8.3.
The following provision is added to Section 8.3 of the Agreement:
"Hauler shall not collect Solid Waste near schools within the District between the hours of
7:30 am. and 9:00 a.m. or between the hours of 1:00 p.m. and 3:00 p.m.
10. AMENDMENT TO ARTICLE 9.
The following shall be added to Section 9.1.1 of the Agreement:
The District's annual Christmas tree recycling program shall commence after New Year's Day,
for approximately twelve (12) days, without cost to District. Daily collection of Christmas tree's
placed curbside will be transported to the AD facility for recycling. The District shall pay for the
recycling of tree's, but not for collection.
The District shall be allowed to hire a third -party contractor to assist with the annual Christmas
Tree Collection program to avoid delays experienced in the past. Hauler is to reimburse the
District 100% of the collection and disposal fees of the third -party contractor.
The following Section 9.1.9 is added to the agreement:
9.1.9 Community Shredding Events
Hauler shall advertise and conduct two (2) shred events each calendar year during the Term. The
first shred event shall be held during the first six (6) months of calendar year 2023 and the second
event shall be held during the second six (6) months of calendar year 2023. During each shredding
event, Residents of District may bring an unlimited quantity of paper for shredding. Hauler shall
arrange the in -District location(s) for such events and shall provide all required labor, equipment,
traffic control and other needed elements for such events. At Hauler's discretion, or if so directed
by District, Hauler may require participants to show evidence of residence within the District (for
example by providing a driver's license, utility bill or other documentation that the Customer
resides within the District's service area). Event dates shall be mutually agreed to by the District
and the Hauler. Hauler shall advertise the events through its website and through mailings and
other public outreach methods described in Section 4 of this Attachment B. If Hauler or District
chooses to require proof of District residency at the events, Hauler shall include this requirement
in all public education materials prior to each community shredding event.
Hauler shall ensure that all paper delivered by Customers to the community shredding events is
properly shredded and Recycled. Hauler shall provide a report to the District within thirty (30)
days after each event listing the number of participants and the quantity of paper received,
shredded, and Recycled as well as the name of the subHauler used for the shredding/secured
destruction and recycling of the paper. Hauler shall provide the community shredding events at
no additional cost to the District or to Customers.
11. CART INVENTORY.
Haulej- will conduct an inventory coati-ol pi-ogi-am to determine the nrImber of` conta nel-s
at each household, Hauler will implement uses- verification by mailing letters to residents and
encouraging them to verify the number- of carts in their possession by using an online system. Each
resident will have a unique account 111.1mbei- assigned to himlher for identity purposes and to log
into the system. Hauler and District,,vill collaborate on the parameters for an audit/user verification
program that will include having cart serial numbers assigned to households.
12. EDUCATION AND OUTREACH.
Hauler shall continue to provide education and outreach programs pursuant to Section 9.2
and 9.3 of the Agreement. Hauler shall comply with all applicable public education and outreach
record keeping and reporting requirements as provided by SB 1383 and the SB 1383 Regulations.
Outreach efforts will include, but not limited to direct mail, cart hangers, knock and talk, and lid
flipping auditing. Hauler and the District will equally share the cost of performing a biennial
community wide citizen survey.
13. PROCUREMENT.
Hauler will assist the District in obtaining compost and other by-products of organics
recycling that can be used and thereby divert organics from going to the landfill. Hauler will
provide District with a Renewable Natural Gas (RNG) procurement allocation consistent with its
usage in collection activities for the District. Hauler agrees that discontinuation of RNG use in
collection vehicles is a material change that must be agreed to by both parties.
14. CUSTOMER WAIVER PROGRAM COORDINATION.
General. In accordance with SB 1383 Regulations and the [District Code], the District may
grant waivers (de minimis, physical space or Collection frequency) to Customers that impact the
scope of Hauler's provision of service for those Customers. Waivers issued shall be subject to
compliance with SB 1383 Regulatory requirements, pursuant to 14 CCR Section 18984.11. If
using a Performance -based Compliance Approach, the District agrees it will only grant waivers if
at least ninety percent (90%) of Customers (including Multi -Family Customers) participate in the
three -Container Collection program.
Requests Submitted to Hauler. Customers may submit requests for de minimis waivers,
physical space waivers, and Collection frequency waivers to the Hauler. Hauler shall within ten
(10) days review the Customer's waiver application and inspect the Customer's Premises to verify
the accuracy of the application. Hauler shall provide documentation of the inspection, including
the Hauler's recommendation to approve or deny the waiver request, and send this information to
the District within ten (10) days of receipt of the Customer's waiver application for the District's
review and approval. The District ultimately retains the right to approve or deny any application,
regardless of the Hauler's recommendation. Hauler shall report information regarding waivers
reviewed on a monthly basis.
Hauler Change in Customers' Service Levels. When the District grants a waiver to a
Customer, the District shall notify the Hauler within three (3) days of the waiver approval with
information on the Customer and any changes to the Service Level or Collection service
requirements for the Customer. Hauler shall have three (3) days to modify the Customer's Service
Level and billing statement, as needed.
Reverification of Waivers. It shall be the responsibility of the Hauler to verify that the
Customers with de minimis, physical space constraint, or Collection frequency waivers continue
to meet the waiver requirements set forth in this Section. Hauler shall conduct such reverifications
of waivers through inspection of each Customer's Premises and review of applicable records at
least once every five (5) years for de minimis and physical space constraint waivers. Hauler shall
maintain a record of each waiver verification and provide a [monthly report] to the District
documenting the waiver reverifications performed and recommendations to the District on those
waivers that Hauler concludes are no longer warranted. The District shall make a final
determination of the waiver eligibility of Customers.
Hauler Recordkeeping of Customers Granted Waivers. Upon Hauler request, no more
than four (4) times per year, the District shall provide Hauler an updated listing of waivers
approved by the District, including the Customers' names, mailing address, service address, and
type of waiver. Hauler shall maintain waiver -related records and report on waiver verifications, as
required herein.
15. INSPECTION AND ENFORCEMENT.
Hauler shall assist the District with and/or conduct applicable inspections and enforcement,
to the extent delegable, as required by SB 1383 Regulations.
Hauler shall maintain all applicable records from inspection, investigations, and
enforcement in accordance with SB 1383 Regulations.
16. PROVISION FOR RECOVERED ORGANIC WASTE PRODUCT.
Hauler agrees to coordinate and cooperate with the District to meet its Organic Waste
produce procurement target, as required by SB 1383 Regulations.
17. RECORDKEEPING AND REPORTING.
Hauler shall maintain all applicable records and assist the District in meeting all applicable
reporting, as required by the SB 1383 Regulations. Hauler shall allow District to audit and inspect
such records and reports upon reasonable request. Hauler shall allow District access to their GPS
technology that captures driver, route and service information in real-time to assist with missed
collection claims.
18. HAULER PERFORMANCE REVIEW.
Diistrict a($rees not use the benclhmarks to approve Or detiv haLIler's regLIest for a rate
dJUStnicnt. 1-1owevcr, District liave the rigiit to deny SLIch rcgLICSt if 1-laulcr receives
" .'nsatistactorv" M their miival perforniance evaluation.
19. EXHIBITS
Exhibits A, B, C, D, and E are hereby amended to read in its entirety as attached hereto.
20. OTHER TERMS AND CONDITIONS UNCHANGED
Except as expressly amended by the Amendment, all other terms and conditions of the
Agreement shall remain unchanged. In the event of any conflict between the terms and conditions
of this Amendment and the terms and conditions of the Agreement and/or any previous amendment
thereto, the terms and conditions of this Amendment shall prevail and control.
21. COUNTERPARTS
This Agreement may be executed in one or more counterparts, each of which shall be
deemed an original. All counterparts shall be construed together and shall constitute one
agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by and
through their respective authorized officers, as of the date first above written.
DISTRICT:
COSTA AN "YDISTRICT
Pr ident
Secretary
A ST
a
D' trict 1 k
APP ED AS PTO FORM:
District Counsel
HAULER:
CR&R INCORPORATED
By: _
Name:
Title:
DocuSign Envelope ID: DD2732EB-BCOF-4678-B559-82DC9510BE00
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by and
through their respective authorized officers, as of the date first above written.
B y
President
Secretary
ATTEST:
District Clerk
M'Wr 'W.
'FFED S 0 FORM:
T 0�
District Counsel
r—DocuSigned by:
CR&R INCORPORATED
M
-- 23A4,8AG462—
Name: Clifford R.Ronnen e4
g-
Title; Chairman/CEO
EXHIBIT A
LIQUIDATED DAMAGES
District shall give notice of assessing liquidated damages. District will submit liquidated
damages to Hauler on an annual basis. Hauler has ten business days to request a
meeting with the general manager and present evidence, but the decision of the general
manager is final.
A. Collection
Reliability
For each failure to collect solid waste, recycling
material, food waste and/or organic waste carts as
$100.00 per
1
defined in Section 2.01.010 of CMSD's Operations
home
Code, in excess of 92 (ninety-two) homes per
month.
For each failure to commence service to a new
residential account within seven (7) calendar days
2.
after order, for basic level of service including solid
$150.00 for each
waste, recycling material and co -collected food
after 5
waste/organic waste in excess of five (5) such
failures annually.
B. Collection
Quality
For each occurrence of damage to private
property which is not corrected to the satisfaction
$250.00 for each
1
of the property owner within thirty (30) days of the
after 5
damage and which exceed five (5) such
occurances annually. -
For each failure to properly return any empty
residential cart in a location at curb or in alley to
$50.00 per
2.
avoid pedestrian or vehicular traffic impediments
occurrence after
or to place the cart in an upright position, in
20
excess of twenty (20) such occurrences annually
Noise levels of equipment used for collection shall
not exceed 75b (seventy-five decibels) when
measured at a distance of fifty (50) feet from
vehicle, five (5) feet from the ground; provided,
however, in the event there is any conflict with this
section and the noises levels permitted under the
$500 per
3.
City of Costa Mesa's Municipal Code shall apply.
Hauler shall submit to District, upon District's
occurrence
request, a certificate of Collection Vehicle noise
level testing, by an independent testing entity, for
any collection vehicle. Nothing in this agreement
shall be construed as granting Hauler any rights or
waivers to violate any applicable laws.
4.
For each failure to clean up solid waste, recycling
$150.00 for each
material, food waste/organic waste spilled from
after 5
carts, within the prescribed timeline described in
contract in excess of five (5) such failures
annually.
For each failure to conform to the requirements of
5.
"Hauler's Equipment", as described in the
$150.00 for each
Agreement, which exceeds five (5) such
after 5
occurrences.
Comingling of solid waste with recycling materials
6.
and/or food waste/organic waste in collection
$1,000 per
vehicles except as provided in the event of
incident
contamination as approved by CMSD staff.
Disposal of reyclable materials, food
$1,000 per
7.
waste/organic waste in a diposal facility except as
incident
ed in this Agreement.
8.
For each ton of organic waste used as Alternative
$150.00 per ton
Dail Cover at the landfill.
For each failure to provide CMSD with 10,000 tons
$95.00 per ton of
per year of guaranteed capacity for processing
9.
recyclable materials and single material
processing
recyclables at the Clean Material Recovery Facility
capacity not
MRF) as described in the Agreement
provided
C. Responsiveness
to CMSD Residents
1
For each failure to initially respond to a resident
$100.00 per
complaint within eight (8) working hours.
complaint
2.
For each failure to conform to the litter abatement
$250 per
re uirements as described in the Agreement.
occurence
Failure of Hauler to maintain an average hold time
$500 per month
3.
of ninety (90) seconds or less for calls made to
that 90-second
CR&R's Customer Service line
average hold time
is exceeded.
Failure or neglect to resolve a resident complaint
$100.00 per
4.
relating to missed collection within one business
incident per
day as described in the Agreement.
resident.
5.
Failure to notify residents of changes in route days
$500.00 per
as described in the Agreemnt
occurrence
For each failure to repair or replace a missing or
6.
damaged cart within two (2) business days of
$50.00 per day
request from CMSD or resident.
For each failure to remove graffiti from carts, or to
7.
replace with carts bearing no graffiti, on the next
$50.00 per day
service day or within seven (7) business days of
request from CMSD or resident
D. Timeliness of Submissions to CMSD
Any report required to be submitted to CMSD by
1
CR&R pursuant to this Agreement shall be
considered late until such time as a correct and
complete report is received by CMSD. Monthly,
quarterly, and annual reports must contain the
information specified in this Agreement. For each
business day (excluding weekends, and the
holidays listed in the Agreement) a report is late,
the daily liquidated damage amount shall be:
A. Monthly Report
$100 per day
B. Quarterly Report
$250 per day
C. Annual Report
$500 per day
D All other reports
$100.00 per day
2.
Failure to provide records requested by CMSD
$250 per day until
within..30 days of CMSD request
completed
Failure of CR&R to provide requested access to
on -board GPS data or video camera footage
within five (5) business days of CMSD request. In
3.
the event of a crash/injury/fatality, failure to
$100.00 per day
provide access to on -board GPS data or video
camera footage to law enforcement within the
timeframe requested by police, sheriff, public
safet or other law enforcement.
E. Accuracy of Billing
Each resident billing for extra services, as
1
described in the Agreement, that is not prepared in
$250.00 per
accordance with list of prices and corrected in a
account
timel manner to the satisfaction of the customer.
F. Personnel
1.
For each week CR&R's Sustainability Coordinator
$500 per week
does not dedicate 20 hours on SIB 1383.
Failure of CR&R represenative to timely respond
$50.00 per
to CMSD within 1 business day of a written letter,
business day until
2.
email or telephone request.
CR&R has
responded to
request
G. Vehicles and Equipment
1
Each day CR&R fails to have in service Alternative
$500.00 per
Fuel vehicles as required in the Agreement
vehicle
Failure to label carts with labels, , and/or decals as
$50.00 per cart or
2.
described in the Agreement and/or failure to
vehicle per
provided SIB 1383 color -coded carts and lids as
business day until
re d in the Agreement
corrected.
Failure to provide all trucks necessary to provide
$100 per vehicle
residential solid waste, recycling material and food
not placed in
3.
waste/organic waste collection program by
service per
November 1, 2024.
business day until
com leted.
4.
Failure to install collision avoidance system on any
$250.00 per
vehicles operating in CMSD by July 1, 2023.
vehicle per day
H. Compliance
Reporting and Audits
Each day, afer the due date on CMSD invoice,
1.
CR&R fails to reimburse CMSD for education and
$250.00 per day
outreach as outlined in Agreement.
Failure to distribute public education materials to
designated residential routes that had 25% or
higher contamination (or as required by SB 1383
regulations) after conducting waste
2.
characterization studies. If the failure continues
$5,000 per route
after the initial assessment of liquidated damages,
the liquidated damages are re -assessed for each
additional thirty (30) day period the failure
continues.
Failure to tag and photo document instances of
$250.00 per
contamination encountered during cart -to -cart
instance of failure
3.
outreach audits.
to tag/photo
document
contamination
Failure to perform required number of Route
$5,000 per
4.
Reviews per year at the number required to be in
missed Route
comp iance with SB 1383 regulations.
Review
Failure to submit reports on route reviews and
$100.00 per
5.
contamination audits within 30 days.
report for each
day the report is
late.
Failure to notify CMSD of date(s) and time(s) of
$250.00 per day
6.
route reviews and contamination audits at least 30
that less than 30
days rior to the review or audit.
days.
I. Public Education and Outreach
1
For each failure to comply with the education
$100.00 per day
programs described in the Agreement.
2.
For each failure to comply with community
$100.00 per day
outreach programs described in the Agreement
Exhibit B
Compensation Schedule
Below are the current rates for a two -cart system. Rates will be adjusted at a later date before
implementing a three -cart system. On a monthly basis, the Hauler shall bill the District for the
following three (3) items:
1. Occupancy Fee. Per Section 3.1.2, this fee includes all costs that the HAULER has for
collection of solid waste and all equipment used including vehicles and carts for all
customers. The current rate is $10.6537per month, per customer based upon monthly
occupancy counts.
2. Mixed Waste Fee. $56.52 per ton.
3. Organics Recycling Fee. $77.77 per ton is wha the HAULER charges for organics
tonnage delivered to the Anaerobic Digestion (AD) facility in Perris,CA. This is
measured on gross tonnage delivered.
EXHIBIT C
AUXILLARY SERVICES
The following prices are effective on
Monthly Price
Notes
the date of this amendment. These
services and prices are direct -billed by
Hauler to Customers for extra services.
Extra Service
Customer receives one (1) trash cart as
Extra Trash Cart
$9
part of their basic service. This price is
for a second and all additional trash
carts.
Customer receives one (1) recycling
Extra Recycling Cart
$9
cart as part of their basic service. This
price is for a second and all additional
rec ch g carts.
Customer receives two (2) organics
Extra Organics Recycling Cart
$9
recycling carts as part of their basic
service. This price is for the third and
all additional organics recycling carts.
Driver will move carts up to fifteen feet
(15') from where the truck is stationed.
Valet Service
$40
Includes retrieving and returning carts
from backyard or side yard. Service
includes up to three 3 carts.
Extra weekly curbside collection
$g
CR&R will return for a second curbside
collection if customer pays fee.
Extra Bulky Item Collection
$25
Includes 3 items per extra bulky item
collection.
Hauler will issue a contamination fee if
prohibited container contaminants are
Contamination Fee
$25
found in customers container on more
than three (3) occasions within a twelve-
month period.
Exhibit D
List of Collection Vehicles to be Provided by Hauler
The costs (including, but not limited to, capital cost, repair and maintenance) for all listed
vehicles and replacements are included in the Hauler compensation in Exhibit B. Vehicle
identification numbers marked as "TBD" shall be provided to the District on or before the roll
our of a three -cart system.
Residential Collection Vehicles as of the Effective Date and Planned Replacement Dates
Vehicle
Type
Vehicle ID Number
Manufacturer
Truc odv
Model
Year
Route
Type of
Planned
Replacement Year
Truck
Body
Fuel
57337
3BPZX2OX7EF251828
Peterbilt
Sideloader
2014
Residential
RNG
2024
57350
3BPZX20XIFF269369
Peterbilt
Sideloader
2015
Residential
RNG
2025
57358
3BPZX2OX2FF269378
Peterbilt
Sideloader
2015
Residential
RNG
2025
57361
3BPZX20XOFF269377
Peterbilt
Sideloader
2015
Residential
RNG
2026
57362
3BPZX20XOFF269380
Peterbilt
Sideloader
2015
Residential
RNG
2026
57410
3BPZX2OX4GF107558
Peterbilt
Sideloader
2016
Residential
RNG
2027
57487
3BPDX2OX7NF113250
Peterbilt
Sideloader
2022
Residential
RNG
2029
57499
3BPDX2OX2PF113594
Peterbilt
Sideloader
2023
Residential
RNG
2030
57506
3BPDX20XIPF113604
Peterbilt
Sideloader
2023
Residential
RNG
2030
57512
3BPDX20XXPF113598
Peterbilt
Sideloader
2023
Residential
RNG
2031
Exhibit E
List of Vehicles to be Provided by Hauler
Shop, Maintenance and Administrative Vehicles
Vehicle Type
Vehicle
Number
Use
Make
Model Year
Type of Fuel
Truck
1155
Route
Ford
2009
Gasoline
Manager
Car
8TNZ463
Sustainability
Toyota Prius
2019
Hybrid
Coordinator
Door -to -Door HHW and Large Item Collection Vehicles
Vehicle Type
Vehicle
Number
Manufacturer Truck/Body
Model Year
Route
Type of Fuel
Truck
Body
Frontloader
53198
Autocar
2006
Large Item
CNG
Box Truck
6262
International
12011
HHW
Gasoline